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Loan Calculator

Before you borrow, know the real cost. Enter the loan amount, annual interest rate and term — the Loan Calculator returns the monthly payment, total interest over the life of the loan, and a full amortization table so you can see exactly how each payment splits between interest and principal.

What you borrow

%

APR

yrs

Monthly payment

299.71

10,789.52 total · 789.52 interest over 3 years

Amortization preview

#PaymentInterestPrincipalBalance
1299.7141.67258.049,741.96
2299.7140.59259.129,482.84
3299.7139.51260.29,222.64
4299.7138.43261.288,961.36
5299.7137.34262.378,698.99
6299.7136.25263.468,435.53

36 payments total — early payments are mostly interest; the balance falls faster later.

How it works

  1. Enter the loan amount (principal) you're considering.
  2. Enter the annual interest rate (APR) and the term in years.
  3. The monthly payment is computed with the standard annuity formula.
  4. Total interest and total cost appear instantly.
  5. The amortization table shows every payment: interest portion, principal portion, and remaining balance.

The formula

Monthly payment

Pmt = P × r ÷ (1 − (1 + r)^−n)

P = principal, r = monthly rate (annual ÷ 12), n = number of monthly payments. This is the standard amortizing-loan formula used by banks.

Worked example

Worked example

  1. Loan: $10,000 at 5% APR for 3 years
  2. r = 0.05/12 = 0.004167, n = 36
  3. Payment = 10000 × 0.004167 ÷ (1 − 1.004167⁻³⁶)

Monthly payment ≈ $299.71; total paid ≈ $10,789 — about $789 in interest. A longer term lowers the payment but raises the interest: check both.

Common mistakes

  • Comparing monthly payments without comparing total interest — a longer term always costs more.
  • Using the nominal rate when the lender quotes APR with fees — APR already includes them.
  • Forgetting grace periods and deferment: interest often accrues during study even when payments don't start.

Frequently asked questions

What is a good student loan interest rate?

It varies widely by country and lender — subsidized federal loans are usually the cheapest option. Always compare APR (including fees), not just the headline rate.

Should I pay off my loan early?

If the rate is higher than what your savings earn, paying early usually wins. But keep an emergency fund first — and check for prepayment penalties.

What's the difference between interest and APR?

APR includes fees rolled into the rate, so it's the truer cost. The calculator assumes a single APR.

Is the amortization schedule exact?

Yes — the table is computed with the standard amortization formula, matching what lenders use (up to rounding differences of a few cents).

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